{"id":9918,"date":"2020-04-08T08:50:25","date_gmt":"2020-04-08T03:20:25","guid":{"rendered":"https:\/\/swaritadvisors.com\/learning\/?p=9918"},"modified":"2020-04-16T15:45:37","modified_gmt":"2020-04-16T10:15:37","slug":"what-is-bonus-share-procedure-to-the-issue-of-bonus-shares","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/learning\/what-is-bonus-share-procedure-to-the-issue-of-bonus-shares\/","title":{"rendered":"What is Bonus Share? Procedure to the issue of Bonus Shares"},"content":{"rendered":"\n

Have you ever wondered what a company does with its accumulated earnings or when its shares price goes up? Often it issues bonus shares to its existing shareholders based on the shares owned by them. Such shares are additional shares that a company provides to its current shareholders without any additional cost. These are the company\u2019s accumulated earnings that are not given out in the form of dividends but are converted into free or bonus shares. For instance, if a shareholder owns 200 shares of a company that declares a bonus of 4:1, then for every one share, he will get four bonus shares that turn out to be 800 free shares. Thus, his total shares will rise to 1000 shares. This write-up will act as a complete guide to the issue of Bonus Shares.<\/p>\n\n\n\n

Registration with SEC – Allotment of Securities fro Public Issue<\/a><\/div>\n\n\n\n
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Table of Contents<\/p>\n